XAU/USD: Wave analysis and forecast for 12/10/2018 – 19/10/2018

The XAU/USD pair is under correction, still likely to grow. Estimated pivot point is at a level of 1183.24.

Main scenario: long positions will be relevant from corrections above the level of 1183.24 with a target of 1263.50 – 1288.00.

Alternative scenario: breakout and consolidation below the level of 1183.24 will allow the pair to continue the rise up to the levels at 1140.70 – 1120.00.

Analysis: Supposedly, a downward impetus 1 finished developing within the wave (C) of senior level on the daily time frame. An upward correction is developing on H4 time frame in the form of the wave 2 of (C), with the wave (c) of 2 forming inside. Supposedly, the wave iii of (c) is developing on the H1 time frame. If the presumption is correct, the pair will resume rising to the levels of 1263.50 – 1288.00. The level 1183.24 is critical in this scenario.